Correlation Between Freedom Bank and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Freedom Bank and Siriuspoint at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Freedom Bank and Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Bank of and Siriuspoint, you can compare the effects of market volatilities on Freedom Bank and Siriuspoint and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Freedom Bank with a short position of Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and Siriuspoint.
Diversification Opportunities for Freedom Bank and Siriuspoint
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Freedom and Siriuspoint is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint and Freedom Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Freedom Bank of are associated (or correlated) with Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Freedom Bank i.e., Freedom Bank and Siriuspoint go up and down completely randomly.
Pair Corralation between Freedom Bank and Siriuspoint
Given the investment horizon of 90 days Freedom Bank is expected to generate 11.49 times less return on investment than Siriuspoint. But when comparing it to its historical volatility, Freedom Bank of is 4.12 times less risky than Siriuspoint. It trades about 0.09 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,359 in Siriuspoint on August 28, 2024 and sell it today you would earn a total of 201.00 from holding Siriuspoint or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Bank of vs. Siriuspoint
Performance |
| Timeline |
| Freedom Bank |
| Siriuspoint |
Freedom Bank and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Bank and Siriuspoint
The main advantage of trading using opposite Freedom Bank and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, Siriuspoint can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Freedom Bank vs. Washington Business Bank | Freedom Bank vs. National Capital Bank | Freedom Bank vs. Community Heritage Financial | Freedom Bank vs. Citizens Financial Corp |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |